IN BRIEF

NEW YORK

Goldman stays cautious about banking's health

Goldman Sachs Group Inc. said Tuesday it's still cautious about the banking industry's health even as it priced a $5 billion stock offering aimed at helping it repay government bailout money.

In a conference call with investors, Chief Financial Officer David Viniar said there are still "headwinds" in the industry because the value of mortgage-backed securities and other assets are still falling. Viniar's comments came a day after New York-based Goldman announced it earned $1.66 billion, or $3.39 per share, during the first quarter, beating the $1.64 per share forecast of analysts polled by Thomson Reuters.

Despite the uncertainty among financial companies, Goldman said it plans to repay the $10 billion in bailout money it received from the government as soon as possible, with help from the stock sale as well as additional reserves.

SAN FRANCISCO

Intel profits surpass Wall Street forecasts

Intel Corp.'s first-quarter profit blew past Wall Street's grim forecasts Tuesday and the company claimed that personal computer sales have started recovering.

"We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns," Chief Executive Officer Paul Otellini said in a statement.

The Santa Clara, Calif.-based company's net income of $647 million, or 11 cents per share, was less than half what the company earned in the same period last year. But analysts polled by Thomson Reuters were expecting far worse, having forecast profit of just 3 cents per share.

Intel's sales of $7.1 billion were down 26 percent from last year, but about $100 million higher than estimates.

TRENTON, N.J.

Earnings decline for Johnson & Johnson

Health care products maker Johnson & Johnson said Tuesday its first-quarter profit dipped only slightly, beating Wall Street expectations, despite sales falling worldwide.

The maker of baby shampoo, contraceptives and biotech drugs posted net income of $3.5 billion, or $1.26 per share. That's down from $3.6 billion in 2008's first quarter.

Earnings per share also amounted to $1.26, due to a $10 billion share buyback program begun in 2007.

But J&J only spent $500 million on buybacks in the first quarter, for a total of $8.6 billion so far.

Analysts polled by Thomson Financial expected, on average, earnings per share of $1.22 and revenue of $15.47 billion.

Revenue fell just over 7 percent, to $15 billion, as sales of consumer health products, prescription drugs and medical devices all fell.

Shuffle Master accused of patent infringement

Shuffle Master Inc., the Las Vegas-based gaming-equipment maker, was sued by TableMax Gaming Inc. and accused of infringing patents used for an electronic-gaming machine.

Shuffle Master's Table Master product, which allows games like poker and blackjack without a dealer, uses three patents belonging to TableMax, the company said Monday in a complaint in federal court in Las Vegas. TableMax asked for unspecified damages and an order barring Shuffle Master's actions.

The patents cover the electronic devices and system architecture in TableMax's multiplayer games, the company said.

Shuffle Master did not respond to a request for comment, Bloomberg News reported.

DETROIT

Pace of talks quickens at Chrysler, slows at GM

The pace of negotiations between Chrysler LLC and its debtholders picked up this week, but talks at General Motors Corp. have slowed as both companies face looming government deadlines to cut their debt in order to stay out of bankruptcy.

Banks and other Chrysler creditors that hold $6.9 billion in secured debt are preparing a counteroffer after they rejected a proposal from the automaker and the government to erase the loans for $1 billion, according to a person briefed on the negotiations.

At GM, a group representing bondholders is still waiting for a counteroffer from the company, according to another person with knowledge of the talks.

Both people spoke on condition of anonymity because the negotiations are private.

NEW YORK

EBay will spin off Skype in initial public offering

EBay Inc. plans to spin off its Internet communications service, Skype, through an initial public offering, undoing a $2.6 billion acquisition that puzzled analysts and that eBay struggled to justify.

San Jose, Calif.-based eBay said Tuesday it expects to complete the IPO in the first half of next year, though it said the timing will be based on market conditions.

EBay bought Skype in 2005 -- and later had to pay some of Skype's investors $530 million because the division met certain targets for profit and growth.

Many analysts questioned the high price because it was unclear why eBay needed to own a service that lets people make free or cheap voice and video calls on computers and cell phones.

NEW YORK

Treasury prices rise as government buys debt

Treasury prices rose Tuesday as stocks fell and the Federal Reserve bought $7.3 billion in government debt.

The benchmark 10-year Treasury note rose 0.63 points to 99.66. Its yield fell to 2.78 percent from 2.84 percent late Monday.

The 30-year bond rose 1.09 to 97.19, and its yield fell to 3.65 percent from 3.69 percent.